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Canada: Tax proposals in 2026 Spring Economic Update

No changes to corporate or individual income tax rates

April 30, 2026

Canada’s Finance Minister on April 28, 2026, delivered the 2026 Spring Economic Update.

The update, which does not include any new changes to the corporate or individual (personal) income tax rates, provides details on proposed reinstatement of the accelerated capital cost allowance (CCA) for eligible liquefied natural gas (LNG) equipment and facilities, and proposed updates to the design of the carbon capture, utilization, and storage (CCUS) tax credit.

The update also proposes making permanent the capital gains tax exemption on the sale of a business to an employee ownership trust and workers cooperative, extending the temporary grace period under the home buyers’ plan, and revising the application process for the disability tax credit, among other changes.

Read an April 2026 report prepared by the KPMG member firm in Canada

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